Definition of smart money

investors who make profitable investment moves at the right time, no matter what the investing environment. In a bull market, such investors buy the stocks that go up the most. In bear markets, they sell stocks short that fall the most. Smart money investors also have access to information about companies, either positive or negative, in advance of when the typical small investor learns of it. The term is also used in a more general sense to convey what sophisticated investors are doing now. Analysts will say "the smart money is buying cyclical stocks now because the economy is improving," for example.